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Hold Amara Raja Batteries; target of Rs 575: Emkay Global Financial

Emkay Global Financial recommended hold rating on Amara Raja Batteries with a target price of Rs 575 in its research report dated January 26, 2023.

January 29, 2023 / 05:34 PM IST
 
 
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Emkay Global Financial's research report on Amara Raja Batteries

AMRJ’s Q3 EBITDA grew by 40% YoY to Rs4bn, 7% above our estimates, as benefits from easing commodity prices were higher than our expectations. However, the recent increase in lead prices is expected to hit margins in the near term. Revenue increased by 12% to Rs26.4bn, standing 2% below estimates. Factoring in the strong Q3 performance, we have increased our FY23E EPS by 5% and slightly increase FY24-25E EPS by 1%. Despite losing out in the PLI-ACC scheme, AMRJ plans to commence construction work on the lithium-ion cell manufacturing facility and production may commence after two years.


Outlook

However, as we do not see any near-term triggers, we retain HOLD with a TP of Rs575/share (Rs560/share), based on 11x FY25E EPS (Dec-24E earlier).

For all recommendations report, click here

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Amara Raja Batteries - 27 -01-2023 - emkay

Broker Research
first published: Jan 29, 2023 05:34 pm

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